Hedge saved you, who will save Hedge ? - page 13

Rafael Grecco
503
Rafael Grecco  

Icham, have you tried youe EA on a live account yet?

Would be interesting to see results, even if it were a cents/nano account.

Icham Aidibe
11818
Icham Aidibe  
Rafael Grecco:

Icham, have you tried youe EA on a live account yet?

Would be interesting to see results, even if it were a cents/nano account.

No I did not. It's not over, commissions aren't well managed. Indeed I could, but actually I don't have a hedging activated account with no commissions.

Icham Aidibe
11818
Icham Aidibe  

No look, it's an hedging account, spread >= 1.5, no commissions

It needs to be optimized. It did suit MetaQuotes server without optimization, directly with the settings I used for DAX, but there no.

Rafael Grecco
503
Rafael Grecco  
Icham Aidibe:

No look, it's an hedging account, spread >= 1.5, no commissions

It needs to be optimized. It did suit MetaQuotes server without optimization, directly with the settings I used for DAX, but there no.

I am working on something similar, but instead of using a "trade zone" for hedging, I open hedge trades based on money management (equity %). I am also trying to add some averaging, trailing stops and breakevens to the mix.

This is what I currently have on EURUSD without optimization, running 2012-2017. Backtested using 99% quality data and 2.0 spreads (while in reality, my broker offers between 1.5-1.8, so it's a worst case scenario) and no comission.

myea

It is not making profit yet, but risk is under control. There are some big drawdowns in the middle that I am still working on, I think it's a programming mistake, because DD shouldn't ever go beyong 6% or 7%.

What I like is that this is not a scalper robot, it doesn't use small TP or SL. Trades are usually closed after a few hours, sometimes a few days.

We could exchange some knowledge and ideas to make both our robots better (and anyone that is reading this).

Icham Aidibe
11818
Icham Aidibe  
Rafael Grecco:

I am working on something similar, but instead of using a "trade zone" for hedging, I open hedge trades based on money management (equity %). I am also trying to add some averaging, trailing stops and breakevens to the mix.

This is what I currently have on EURUSD without optimization, running 2012-2017. Backtested using 99% quality data and 2.0 spreads (while in reality, my broker offers between 1.5-1.8, so it's a worst case scenario) and no comission.


It is not making profit yet, but risk is under control. There are some big drawdowns in the middle that I am still working on, I think it's a programming mistake, because DD shouldn't ever go beyong 6% or 7%.

What I like is that this is not a scalper robot, it doesn't use small TP or SL. Trades are usually closed after a few hours, sometimes a few days.

We could exchange some knowledge and ideas to make both our robots better (and anyone that is reading this).

Sure. I have actually small TP & SL which define a receovery zone on that one, it's unadapted to everyspread (for example from EURUSD to USDRUB). It's an excellent idea to use a percentage of equity, how much do you use target ?

Previous curve on the account not optimized when I use a larger zone : 

And it's possible to use a % equity for taking profit, convert it into points whatever the symbol, whatever the broker.

Rafael Grecco
503
Rafael Grecco  
Icham Aidibe:

Sure. I have actually small TP & SL which define a receovery zone on that one, it's unadapted to everyspread (for example from EURUSD to USDRUB). It's an excellent idea to use a percentage of equity, how much do you use target ?

Previous curve on the account not optimized when I use a larger zone : 

And it's possible to use a % equity for taking profit, convert it into points whatever the symbol, whatever the broker.

This last graph seems much better than the previous one. Maybe the way to go is using a larger zone.

I am not using use TP at all. If my first trade goes on the correct direction, I put a SL at breakeven and let profit run free. I close the trade based on maximum profit minus 25%. By that i mean, if the profit reaches for example 100 pips, I would close the trade if profit retracted to 75 pips.

If the trade goes on the wrong direction, I open the first hedge trade if balance drops 0.5% (I compare current equity to total balance, if equity is lower than 99.5% of balance I open the hedge). This value must be ajusted to your inital lot size, you have to try some combinations.

Then I open a third hedge at 1% balance drop and the fourth at 3% balance drop. I do not open any additional trades, 4 is the maximum. All this numbers are subject to change, it might not be optimized.

How much TP do you use? Is it fixed? What about SL, how do you define when to use a SL and at what level?

Icham Aidibe
11818
Icham Aidibe  

I am charging spreads and commissions but this should not happen. It's definitely not over, I'll do it one day but not now I'm a little bored.

Matthew Colter
1953
Matthew Colter  
Rafael Grecco:

This last graph seems much better than the previous one. Maybe the way to go is using a larger zone.

I am not using use TP at all. If my first trade goes on the correct direction, I put a SL at breakeven and let profit run free. I close the trade based on maximum profit minus 25%. By that i mean, if the profit reaches for example 100 pips, I would close the trade if profit retracted to 75 pips.

If the trade goes on the wrong direction, I open the first hedge trade if balance drops 0.5% (I compare current equity to total balance, if equity is lower than 99.5% of balance I open the hedge). This value must be ajusted to your inital lot size, you have to try some combinations.

Then I open a third hedge at 1% balance drop and the fourth at 3% balance drop. I do not open any additional trades, 4 is the maximum. All this numbers are subject to change, it might not be optimized.

How much TP do you use? Is it fixed? What about SL, how do you define when to use a SL and at what level?

Try hedging at 3% move against you in price, and adding size every 0.25% move in price. I've made a spreadsheet for calculating this kind of thing, you can make a copy of it and plug in your own values. Attached you'll find a pdf export of the spreadsheet with some values and margin requirements that show a 16% change in price in your favor would double the account balance. A 60% change in price against you would leave you with nothing under the same conditions. This would be with no tp or sl.

Files:
Rafael Grecco
503
Rafael Grecco  
Matthew Colter:

Try hedging at 3% move against you in price, and adding size every 0.25% move in price. I've made a spreadsheet for calculating this kind of thing, you can make a copy of it and plug in your own values. Attached you'll find a pdf export of the spreadsheet with some values and margin requirements that show a 16% change in price in your favor would double the account balance. A 60% change in price against you would leave you with nothing under the same conditions. This would be with no tp or sl.

Thank you Matthew! I'll have a look at these spreadsheets and try to adjust my EA. I'll probably post some results tomorrow.

Rafael Grecco
503
Rafael Grecco  

Matthew, your spreadsheet is interesting, but I see you made it based on an account balance of 8000. Changing the initial capital, changes the ratio.

I am building something to work with as little as 1000 USD balance. Also, your example uses summative lots, while I prefer to use multiplicative lots.

Beyond adjusting the sizes and % of equity to open trades, I am starting to use filters to let the EA decide if it should open a opposite trade (buy -> sell) to start a hedge, or use a trade on same direction to apply the priciple of averaging. It is hard to think of a manner to make both work together, for example: If a hedge trade was already opened, it could open another trade on the same direction of the hedge to use averaging, even when the initial trade is opposite.

I am also applying time filters, so trades don't take too long to recover. What I am doing is: the more time it passes, the bigger the loss the EA accepts. For example: After 12 hours of hedging/averaging, if the loss is at maximum 1% of balance, it takes the loss. After 24hours, the accepted loss is 2% of balance, after 36 hours - 3% and so on. it needs some more tests, but is seems to work well.

The problem is that after I applyed this time filter, my MT4 started to freeze after some trades... it stays frozen for some minutes and then continues backtesting. I need to find what is causing this.

I don't think this is a hedge system anymore, I would call it a recovery system.

This is what I currently have:

Recovery System

Comments and opinions are welcome!